Mining Industry Indonesia’s smelter grade alumina refinery project is targeted for completion in 2023
The BUMN mining holding or Mining Industry Indonesia (MIND ID) is still working on several strategic projects even amid the COVID-19 pandemic, one of which is the Smelter Grade Alumina Refinery (SGAR).
This project is a collaboration between PT Indonesia Asahan Aluminum (Inalum) and PT Aneka Tambang Tbk (ANTM). The composition of Inalum's share ownership in SGAR is recorded at 60%, while the remaining 40% is owned by ANTM. The two of them formed a subsidiary called PT Borneo Alumina Indonesia (BAI).
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Orias Petrus Moedak, President Director of MIND ID said: “The project, which is located in Mempawah, West Kalimantan, will connect the supply chain between the bauxite mineral ore from ANTM's IUP and Inalum's aluminium smelter.”
“So far, Indonesia often exports raw bauxite which is processed abroad and then re-exported here. We should be able to process it ourselves”, he said in the Hearing Meeting (RDP) with Commission VI DPR RI on 29th September’20.
Currently, the SGAR project is in the stage of land acquisition, which is the initial work level and is seeking loans in the form of bridging loans and project financing.
Apart from the pandemic factor, the project also has other obstacles. For example, stagnant negotiations related to land acquisition with the community and constraints on shareholder support for accelerating capital and loan payments to PT BAI as the direct manager of the SGAR project.
The SGAR project itself has a somewhat jumbo investment value of $ 831 million and involves 881 workers. "The construction period will be for 2 years and operation is expected to start in the first quarter of 2023," added Orias.
Later, when it operates, SGAR will be able to produce 1,000 Ktpa of alumina.
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